BEN Company is involved in biotechnology research and has been awarded a number of patents for product development in the blood fractionation industry. The Company is seeking additional finance to fund the development and delivery of new products to the market. Due to the strength of its management team and strong portfolio of patents, the company has been approached by a large institutional investor who is keen to take an equity interest in the company subject to the determination of a fair valuation of the company.

The Debt and equity structure of the firm as at 30th June, 2017, is as follows:

The Debt and equity structure of the firm as at 30th June, 2017, is as follows: CAPITAL STRUCTURE Long term debt 1,200,000 Issued Shares Issued Ordinary Shares $0.50 Issue Price 2.000.000 Retained Earnings 860,000 2,860,000 Capital Employed 4.060.000 BEN Com - .n - 5 Year Pro'ection Net Operating Profit after tax 180,000 189,000 207,900 220,150 209,150 Interest Expense 30,000 30,000 25,000 20,000 15,000 Depreciation 65,000 65,000 57,000 62,000 62,000 Capital Asset (Investment), Disinvestment ($40,000) ($42,000) ($46,200) ($51,200) ($55,450) Working Capital - (increases), Decrease ($19,000) ($20,900) ($23,500) ($26,460) ($29,460)